YouHodler Review: Earn from Your HODLing
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Holding your crypto assets (or HODLing) is widely regarded as one of the best things you can do with them. However, you may feel like you’re missing out by not taking advantage of price swings, drops and peaks, etc. to make the most of what you own and increase your holdings—as risky as that is. Luckily, YouHodler is a service that offers an alternative to simply letting your funds lie: you can lend them and earn interest—or just keep them in a savings account and again accrue interest at competitively high rates.
If you have crypto lying around, you might want to put it into a savings account and actually earn more crypto on that. On YouHodler, the percentage will vary depending on which coin you’re depositing: you can get the most from stablecoins, which will yield you 12% or more, but other coins have decent annual percentage rates (APRs) as well. For example, Bitcoin (BTC) will get you 4.8% of the deposited amount on a yearly basis, while Ethereum (ETH) has an interest rate of 5.5%. YouHodler offers a total of 33 different coins that you can place into a savings account with varying degrees of interest. Still, the lowest they can go is 2.5%, which is still decently high.
For comparison with traditional finance, comparison service Bankrate puts the US national average APY for savings accounts at a measly 0.06%. The highest APY as of June 2021 was 0.61%. For crypto holders, such low interest rates are unimaginable: the least you can receive is 2.5% on an annual basis for Augur (REP), while all other coins will yield you far more than that. Additionally, you will get paid on a weekly basis; there is no need to wait for longer periods of time, which is often the case in traditional institutions.
If you need funds, YouHodler also offers loans. You can use 30 different cryptocurrencies as collateral with a loan to value ratio of 90% — which means your loans will need to be overcollateralized. Of course, this is not a problem as long as you know you will return the loan in a timely manner: overcollateralization is the norm in crypto borrowing and lending. This loan to value ratio is available for a 30-day loan: if you need longer to return the funds, you will get a loan to value ratio of 50% for a 180-day loan, and 70% for a 61-day loan. Of course, if you can’t repay all of the loan, you won’t receive all of your collateral back.
The loans you receive can be paid out in EUR, USD, CHF and GBP and withdrawn instantly to credit card and personal banks. The minimum amount is USD 100, which is on the lower end in the industry: other services often require you to take out USD 1,000 or more.
Additionally, YouHodler also offers an exchange with universal conversion between all altcoins and stablecoins, as well as fiat. There is also a Multi HODL service, similar to margin trading, where you can earn up to 30x your holdings. However, it comes with all the risks of your usual margin trading, so be sure to do your due diligence and only invest as much as you can afford to lose.
To summarize, if you have crypto lying around and want to put it to good use—YouHodler is the platform for you. Regardless of whether you want to keep your Bitcoin in a crypto wallet, earn interest on your savings account or take out a fiat loan backed by your crypto, this is the perfect place for this. Happy trading!